Risk management for USDT-M positions in multi-asset mode

Calculation of maintenance margin rate (MMR) for USDT-M positions in multi-asset mode

The multi-asset mode allows you to use other coins as margin when trading USDT-M Futures. Non-USDT coins will be converted into USDT based on their haircut rates, and these converted amounts are combined to form your multi-asset margin.

Multi-asset margin = coin A × index price A × haircut A + coin B × index price B × haircut B + ...

When the multi-asset margin in your USDT-M Futures account is less than the maintenance margin requirement, liquidation or partial liquidation will occur.

Where,

Maintenance margin for liabilities = absolute value of liability × maintenance margin rate for liabilities. The MMR is currently set at 5% and may be adjusted based on market conditions. Any adjustments will be announced in advance.

Liabilities = min(0, coin equity). In multi-asset mode, USDT-M positions only incur liabilities in USDT.

Note: If your USDT-M positions are in multi-asset mode with incurred liabilities and are subject to liquidation or partial liquidation, the system will automatically convert other coins to USDT to reduce risk and better protect your positions.

Liquidation price or partial liquidation price for USDT-M Futures

Risk assessment

When the multi-asset margin is less than the maintenance margin requirement, liquidation or partial liquidation will occur.

Maintenance margin = max(maintenance margin 1, maintenance margin 2).

Calculation of maintenance margin 1:

In hedging mode,

Maintenance margin 1 = (larger position value + order value) × (MMR of the corresponding tier + liquidation fee rate)

In one-way mode,

Maintenance margin 1 = max(long positions + sum of long orders, short positions + sum of short orders) × (MMR of the corresponding tier + liquidation fee rate)

Maintenance margin 1 refers to the maintenance margin amount occupied by positions or open orders.

The current liquidation fee rate is set at 0.06%.

Liabilities

Maintenance margin 2 = absolute value of liabilities × 5%

Maintenance margin 2 refers to the maintenance margin amount occupied by liabilities.

Maintenance margin = max(maintenance margin 1, maintenance margin 2).

Maintenance margin rate (MMR) = max(maintenance margin 1, maintenance margin 2) ÷ multi-asset margin

Liquidation price or partial liquidation price (applicable to multi-asset margin only)

Available margin for loss = multi-asset margin – max(maintenance margin 1, maintenance margin 2)

For trading pairs with a net long position,

Liquidation or partial liquidation price = latest mark price – available margin for loss ÷ net position value

For trading pairs with a net short position,

Liquidation or partial liquidation price = latest mark price + available margin for loss ÷ net position value

Risk management process for USDT-M Futures positions

The risk management process is triggered when the MMR reaches 100%.

1. All orders are canceled.

2. Positions in hedging mode are netted.

3. Partially liquidate positions to lower the position tier and reduce risk.

• Before lowering the position tier, the system will try to lower the MMR to below 100% by converting other coins into USDT. The exchange rate is structured in tiers with decreasing haircuts. The conversion starts with the highest haircut, where all coins in that tier will be converted to USDT. If the MMR falls below 100% after this conversion, the position will no longer be lower.

• If the MMR is still above 100%, the position tier will be lowered by partial liquidation to bring the MMR down to around 70%.

1. Liquidation

• If all positions are at the lowest tier but the MMR is still over 100%, liquidation will occur.

• If there are liabilities remaining, and other coins are at the exchange rate tier with the lowest haircut, and the MMR exceeds over 100%, liquidation will occur. Other coins will be converted for USDT to repay the liabilities. After repaying the liabilities, any remaining maintenance margin allocated for the liabilities will be transferred to Bitget's liability risk fund for USDT-M positions in multi-asset mode. If the user's account balance becomes negative after the liabilities are repaid, the risk fund will cover the shortfall.

Liability risk management for USDT-M positions in multi-asset mode

When a user's liabilities in the multi-asset mode exceeds their individual liability limit, the risk management process will be triggered, and other coins will be converted for USDT to repay the liabilities and reduce the risk.

1. Warning notification: The system will notify the user when their liabilities reach 80% of their individual limit.

2. Automatic liability repayment: If the user's liabilities exceed the individual liability limit, other coins will be converted into USDT to repay the liabilities, reducing them to 70% of the individual limit or lower.

Always monitor your liabilities. To reduce risk, consider adding more margin or manually converting other coins into USDT.